Dollar Dominates as Tariffs Shake Global Markets
The dollar surged against major currencies this week following U.S. tariff hikes under President Trump. Key non-tariff factors also fueled the dollar's strength, affecting currencies like the yen, loonie, and euro. Global trade tensions continue to impact currency values, with future economic data poised to influence market directions.
The U.S. dollar experienced its strongest rally in nearly three years, buoyed by new tariff measures imposed by President Donald Trump. The dollar's rise was not solely due to tariff impacts; other variables also contributed to the currency's current dominance.
Japan faced significant currency fluctuations as the yen plunged to a four-month low, forcing Finance Minister Katsunobu Kato to express concerns over currency volatility. Meanwhile, the dollar index climbed 2.5% this week, marking its best performance since last September.
Various nations grappled with the effects of tariffs on their currencies, with Canada and Switzerland among the hardest hit. The euro also weakened due to an unfavorable trade agreement with the United States, adding further strain to its valuation amid ongoing geopolitical tensions.
(With inputs from agencies.)
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